Co-branding has emerged as an effective strategy that can help many brands achieve greater visibility and differentiation in the market in which they compete. And when you are in one of the most competitive sectors such as the hotel market, brand differentiation is paramount.
Therefore, every hotelier should pay attention to this strategy that important hotel chains are using and that has brought them resounding success.
That is why, in this article, we will explore how hotel co-branding can help your hotel improve its presence in the market and be more profitable.
WHAT IS HOTEL CO-BRANDING?
Hotel co-branding is defined as the strategy whereby a hotel company partners with another business brand to offer services together. In this sense, the idea of hotel co-branding is to make the hotel brand stand out from the others.
In other words, it is a strategy that helps a hotel, resort or any other establishment to diversify and promote a more attractive service offering than the competition.
For example, a hotel company could work in partnership with a cosmetics company. In this case, the amenities (gels, creams, shampoo, soaps, among others) offered by the hotel would be of the brand with which it works together. And this also happens the other way around, i.e., the cosmetics company promotes the hotel’s services in its products.
BENEFITS OF HOTEL CO-BRANDING
1. YOU INCREASE MARKET SHARE
One of the benefits of hotel co-branding is that it will allow you to increase your market share. This is because by teaming up with another company you will have access to their target as well, which will increase your target. This translates into an increase in the percentage of business within the hotel market.
On the other hand, if you study market share you will be able to compare your revenues with those of other competing companies. Knowing this gives you a broader vision to adjust your commercial strategy and improve performance.
2. YOU GET POSITIONING
A company’s brand positioning is a crucial factor. This is so because it helps you to differentiate yourself from the competition, to have a justification in room pricing and to have continuous bookings.
In this sense, co-branding also gives you the benefit of brand positioning. The reason is that, by accessing other brands, your brand image increases the impact in the minds of customers. In other words, you will have greater visibility. And this justifies the fact that customers think of your company and not those of your competitors.
3. YOU STRENGTHEN THE RELATIONSHIP WITH CUSTOMERS
Hotel co-branding also helps you strengthen the relationship with your customers. As we already said, when you team up with another company you can offer services and products together. And this fact allows a hotel to show to its customers that it is committed to their needs and desires. And that it is also willing to collaborate with other brands to offer a better experience.
Consequently, this strategy can improve customer satisfaction and foster brand loyalty. For example, if a hotel partners with a spa brand to offer spa and accommodation packages, it can demonstrate its commitment to customer wellness.
4. YOU INCREASE PROFITABILITY
Finally, if hotel co-branding increases market share, gains more positioning and builds loyalty, it translates into more sales, more revenue and increased profitability.
In addition, when you work together with a recognized brand you can leverage the strengths of both to create more attractive and higher quality services and products. Consequently, this means greater profitability.
HOW TO APPLY CO-BRANDING
To apply hotel co-branding properly, certain criteria must be taken into account. And these criteria must promote and ensure a correct relationship between the hotels and the valued brands.
In this case, the criteria have to do with aspects such as which brand can adapt to the type of hotel or hotel establishment (boutique hotel, resort, vacation or urban hotel, among others) that you own.
On the other hand, you must evaluate which segments the hotel is targeting; the category of the establishment; occupancy; room rates and costs to apply co-branding.
All this must be evaluated for a proper implementation of the strategy in question.
Hotel co-branding can be an effective strategy to improve your hotel’s presence in the hotel market. In addition, it can generate brand positioning, strengthen customer relationships and increase your company’s profitability.
Therefore, it is important for hotels to consider co-branding as a valuable tool in their business strategy and seek partnerships that are beneficial to both their brand and their customers.
If you have a hotel and you are looking to partner with a recognized company, but you don’t know how to do it, don’t hesitate to write to us, because at IHCS we can help you find the right partners.